Along with Bitcoin investment and immediately after forming an emergency fund, you have some more precautionary measures, if a person calculates and spends his daily expenses, then at the end of the month he will definitely save some money. And you can add this savings to Bitcoin investment by giving money and you can increase it even more by adding it to your current investment.
Sometimes someone doesn't need to do so many different daily tasks to increase there ongoing investment but instead they can use what they are getting from one to achieve what they intend because with determination it doesn't matter the amount provided that there would almost be a discretionary income for them after every measures of satisfying spending demands, because it will definitely be unhealthy when someone is going beyond the limits at which there strength could carry them in other to increase accumulation because if the person breakdown because of non resting it affects the consistency they were even maintaining on Bitcoin so actually the conclusion is that you can choose to increase your Bitcoin investment if there is an availability of more resources but don't over labor yourself for multiple job when you are already doing well with your current amount are putting in Bitcoin regularly.
Not everyone depends on one type of income. Some people earn only by physical labor, some people have online business, service sector or many other types of income. So if someone has physical and mental ability, then he can earn any other type of income if he wants. If he can increase the income path, it is definitely beneficial. For example, if someone's monthly income is $1000 and if he spends $700, then his discretionary income is $300. From here, if he wants, he will invest 200 per month in Bitcoin. Now if he creates a second source of income, if it is also $200 per month , then it will also remain as his discretionary income. And if he wants, he can invest the amount of his investment in Bitcoin, the previous $200 and the second income $200 together, to $400 in the DCA method. In this way, he will be able to achieve the over accumulation stage much faster than before.
Apart from this, if he has only one source of income, then after losing his job, he may face major financial problems. If he does not get a new job very soon. So I think alternative income should be arranged.You are correct that alternative income can give more resilience in regards to shortage of cashflow and also in terms of having more discretionary income to be able to invest in bitcoin. At the same time, there sometimes can be situations in which loss of income and/or increases in expenses come from inabilities to work, which is part of the reason that an emergency fund would cover some circumstances that an extra job (extra source of income) will not cover.
Of course one the powers of building an investment to a certain high standard, the investment might at some point serve as a source of income, yet we also want to be careful not to have to start drawing from our investment prior to their getting built up to a sufficiently high enough level... and so persons without sufficient cash backups will end up drawing upon some or all of their investments, which might be tolerable to a certain extent, even though none of us should be wanting to end up selling any of our bitcoin at a time that is not of our own choosing, yet if our bitcoin is our last source of funds, and we have exhausted all other funds, then at that point we no longer have a choice.. and sometimes keeping some reasonable sized back up funds will be enough to help us to avoid tapping into our bitcoin at a time that was not at our own convenience.
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Personally, I think that a common mistake that poor people make is that they get overly excited about investing in bitcoin and then they end up getting overly aggressive because they want to put as much of their money to work as possible, so they end up erroring on the side of getting side income and secondary income rather than maintaining a proper amount of back up funds. .and they think that their hustle and their ability to find new work is going to save them from any of their cashflow fluctuations and the various surprises that sometimes come about, and surely poor people do not tend to have a lot of resources, so when they fuck up they cannot go crying to mommy and/or daddy to bail them out like a richer person might have mommy/daddy as a resource, and also some other various kinds of back up funds that they don't even think about.. and poor people don't have those kinds of back up funds and/or systems in place, so they purposefully have to spend time, money and effort to make sure that they are maintaining a sufficient enough of a cash cushion so that they don't have to cash out of any of their bitcoin at a time that is not of their choosing.
Another thing that poor people do is that they might get themselves into a pickle or even use some or all of their bitcoin as their emergency fund, and they conclude that it is not a problem that they are using their bitcoin as an emergency fund, because the bitcoin is "in profits." Their bitcoin might be like 3x or more in profits and they are more than eager to cash out some of it, so they don't even have enough patients to keep on accumulating since their bitcoin might even be the most wealth that they could have ever imagined building up, so they are kind of shell shocked and not able to handle themselves in regards of really having a lot of wealth building up and being able to control themselves in terms of not spending it and making sure that they have adequate systems in place so that they don't need to touch it at all, even if their bitcoin is in profits and even if the value of their bitcoin is bouncing around in price and going up and down and they wrongly conclude that they can catch it at a peak and then buy back cheaper.. so they get too greedy for their own good.
Financial discipline and planning is indeed for every investor, especially for individuals with limited resources. As this can potentially help to strike a balance between investing in assets like Bitcoin and simultaneously maintaining a sufficient emergency fund.
Most poor folks sure do often certain challenges like having insufficient financial safety nets thereby having absolutely nothing solid to fall back on whenever there's an emergency or financial need, and this is the reason why it's important for them to prioritize building a solid emergency fund and other backup funds as this can potentially serve as a cushion to protect them whenever an emergency surfaces and prevent them from actually using their investment as a source of cash to cover for financial needs.
The phenomenon that you also described about folks being overly excited about investing in Bitcoin is also very much understandable too, because Bitcoin offers the potential for significant gains and this can be very enticing sometimes, but even in the midst of the excitement, it's crucial for investors to always stay calm and maintain a level head, because that's the only way they can be able to focus on the long term financial potentials and stability of the asset.
When folks depend on their Bitcoin portfolio as an emergency fund, the outcome becomes very problematic, regardless of the fact that they're in profits, because it'll require them to sell off some portion of their stash to cover for that urgent need, and since the market can be very volatile, it'll potentially lead to significant fluctuations in the value of your Bitcoin, thereby making it difficult for one to know precisely when is the right time to sell.
Your point about the importance of being patience and having self control is also well noted. In order to successfully build wealth, it's crucial to prioritize discipline and patience and a well thought out strategy, as these are the key to success, especially when dealing with assets as volatile as Bitcoin. One must prioritize long term financial goals over short term gains, which is often the reason why most investors end up making impulsive decisions. By acknowledging these major red flags and sorting for steps towards mitigating those challenges, individuals put themselves in a better position to better navigate those challenges of Investing in Bitcoin and focus on their long term goals to build a more stable financial foundation.